AB 3285: Alcoholic beverage control.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2024-09-12
Current Status:
Passed
(2024-09-12: Chaptered by Secretary of State - Chapter 230, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill lets up to four extra on‑sale general liquor licenses be issued in any county with fewer than 7,000 people whose economy depends on tourism and continued use of recreational facilities, for restaurants that seat at least 100 diners. Those special licenses cannot be moved to another county or to a location that does not meet the seating and economic rules. The bill also extends until January 1, 2030 the rule letting alcohol producers (winemakers, beer and spirits makers, craft distillers, and similar producers) donate part of a product’s purchase price to a nonprofit in connection with a sale.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application for, and issuance and suspension of, alcoholic beverage licenses. Existing law creates various types of on-sale general licenses. Existing law authorizes the department to issue 4 additional new original on-sale general licenses for bona fide public eating places for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that countys recreational facilities. Existing law prohibits a license of this type from being transferred from one county to another.
This bill would additionally require that the economy of a county in which the licenses described above may be issued also be dependent on tourism. The bill would prohibit the transfer of these licenses to any premises that do not qualify under the provisions pursuant to which these licenses are issued.
The Alcoholic Beverage Control Act prohibits a licensee from giving a premium, gift, or free goods in connection with the sale and distribution of any alcoholic beverage, except as provided. Existing law, as an exception to that prohibition, until January 1, 2025, authorizes a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to certain limitations, including a prohibition on a promotion or advertisement of the donation that directly encourages or references the consumption of alcoholic beverages.
This bill would extend the operation of that exception until January 1, 2030.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application for, and issuance and suspension of, alcoholic beverage licenses. Existing law creates various types of on-sale general licenses. Existing law authorizes the department to issue 4 additional new original on-sale general licenses for bona fide public eating places for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that countys recreational facilities. Existing law prohibits a license of this type from being transferred from one county to another.
This bill would additionally require that the economy of a county in which the licenses described above may be issued also be dependent on tourism. The bill would prohibit the transfer of these licenses to any premises that do not qualify under the provisions pursuant to which these licenses are issued.
The Alcoholic Beverage Control Act prohibits a licensee from giving a premium, gift, or free goods in connection with the sale and distribution of any alcoholic beverage, except as provided. Existing law, as an exception to that prohibition, until January 1, 2025, authorizes a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to certain limitations, including a prohibition on a promotion or advertisement of the donation that directly encourages or references the consumption of alcoholic beverages.
This bill would extend the operation of that exception until January 1, 2030.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application for, and issuance and suspension of, alcoholic beverage licenses. Existing law creates various types of on-sale general licenses. Existing law authorizes the department to issue 4 additional new original on-sale general licenses for bona fide public eating places for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that countys recreational facilities. Existing law prohibits a license of this type from being transferred from one county to another.
This bill would additionally require that the economy of a county in which the licenses described above may be issued also be dependent on tourism. The bill would prohibit the transfer of these licenses to any premises that do not qualify under the provisions pursuant to which these licenses are issued.
The Alcoholic Beverage Control Act prohibits a licensee from giving a premium, gift, or free goods in connection with the sale and distribution of any alcoholic beverage, except as provided. Existing law, as an exception to that prohibition, until January 1, 2025, authorizes a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to certain limitations, including a prohibition on a promotion or advertisement of the donation that directly encourages or references the consumption of alcoholic beverages.
This bill would extend the operation of that exception until January 1, 2030.
Existing law, the Alcoholic Beverage Control Act, which is administered by the Department of Alcoholic Beverage Control, regulates the application for, and issuance and suspension of, alcoholic beverage licenses. Existing law creates various types of on-sale general licenses. Existing law authorizes the department to issue 4 additional new original on-sale general licenses for bona fide public eating places for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that countys recreational facilities. Existing law prohibits a license of this type from being transferred from one county to another.
This bill would additionally require that the economy of a county in which the licenses described above may be issued also be dependent on tourism. The bill would prohibit the transfer of these licenses to any premises that do not qualify under the provisions pursuant to which these licenses are issued.
(a)Notwithstanding any other provision of this chapter, in any county where the inhabitants number less than 7,000 and where the major economy of that county is dependent upon tourism and the continual use of that countys recreational facilities, the department may issue four additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license under this section shall have a seating capacity for 100 or more diners. In no event shall more than four such licenses be issued under this section.
(b)In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
(c)A license issued pursuant to this section shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.
SEC. 2.Section 25600 of the Business and Professions Code is amended to read:25600.(a)(1)No licensee shall, directly or indirectly, give any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as provided by rules that shall be adopted by the department to implement this section or as authorized by this division.
(2)(A)Notwithstanding paragraph (1), for purposes of this section, a refund to, or exchange of products for, a dissatisfied consumer by a licensee authorized to sell to consumers shall not be deemed a premium, gift, or free goods given in connection with the sale or distribution of an alcoholic beverage.
(B)A winegrower may advertise or otherwise offer consumers a guarantee of product satisfaction only in newsletters or other publications of the winegrower or at the winegrowers premises. A winegrower may refund to a dissatisfied consumer the entire purchase price of wine produced by that winegrower and sold to that consumer, regardless of where the wine was purchased.
(3)(A)Notwithstanding paragraph (1), a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier may donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to all of the following limitations:
(i)The donation is only in connection with the sale or distribution of alcoholic beverages in manufacturer-sealed containers.
(ii)Promotion or advertisement of the donation shall not directly encourage or reference the consumption of alcoholic beverages.
(iii)A donation shall not benefit a retail licensee, or benefit a nonprofit charitable organization established for the specific purpose of benefiting the employees of retail licensees and the advertisement or promotion of a donation, shall not, directly or indirectly, advertise, promote, or reference any retail licensee. This is not intended to preclude the identification of licensed retailers as permitted by Section 25500.1.
(B)This paragraph shall be inoperative on January 1, 2030.
(b)(1)Except as provided in paragraph (2), no rule of the department may permit a licensee to give any premium, gift, or free goods of greater than inconsequential value in connection with the sale or distribution of beer. With respect to beer, premiums, gifts, or free goods, including advertising specialties that have no significant utilitarian value other than advertising, shall be deemed to have greater than inconsequential value if they cost more than twenty-five cents ($0.25) per unit, or cost more than fifteen dollars ($15) in the aggregate for all those items given by a single supplier to a single retail premises per calendar year.
(2)(A)No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a beer manufacturer to the general public other than three dollars ($3) per unit original cost to the beer manufacturer who purchased it.
(B)With respect to beer, a beer manufacturer may give consumer advertising specialties to the general public that do not exceed three dollars ($3) per unit original cost to the beer manufacturer who purchased it. For purposes of this paragraph, beer manufacturer includes a holder of a beer manufacturers license, a holder of an out-of-state beer manufacturers certificate, an out-of-state vendor that holds a certificate of compliance, or a holder of a beer and wine importers general license. A licensee authorized to give consumer advertising specialties pursuant to this paragraph shall not be precluded from doing so on the basis of holding any other type of alcoholic beverage license.
(C)A beer manufacturer, as defined in subparagraph (B) of paragraph (2) shall not require a beer wholesaler to fund the purchase of consumer advertising specialties that beer manufacturers are permitted to give under paragraph (2).
(D)Consumer advertising specialties furnished by a beer manufacturer are intended only for adults of legal drinking age. Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items that appeal to minors or underage drinkers may not be used in connection with the merchandising of beer.
(c)With respect to distilled spirits and wines, a licensee may furnish, give, rent, loan, or sell advertising specialties to a retailer, provided those items bear conspicuous advertising required of a sign and the total value of all retailer advertising specialties furnished by a supplier, directly or indirectly, to a retailer do not exceed fifty dollars ($50) per brand in any one calendar year per retail premises. The value of a retailer advertising specialty is the actual cost of that item to the supplier who initially purchased it, excluding transportation and installation costs. The furnishing or giving of any retailer advertising specialty shall not be conditioned upon the purchase of the suppliers product. Retail advertising specialties given or furnished free of charge may not be sold by the retail licensee. No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a distilled spirits supplier to a retailer or to the general public of less than five dollars ($5) per unit original cost to the supplier who purchased it. A rule or decision of the department may not approve glassware as an authorized retailer advertising specialty for distilled spirits or wine under this section.
(d)(1)Notwithstanding any other provision of this division, a beer manufacturer or distilled spirits manufacturer may provide directly to consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service for the purpose of furthering public safety. The free or discounted rides may be provided by vouchers, codes, or any other method to deliver the free or discounted ride. A free or discounted ride, or the provision of a voucher, code, or other method of delivery, shall not be conditioned upon the purchase of an alcoholic beverage. A beer and wine wholesaler or distilled spirits importer general that holds a wholesalers or retailers license only as an additional license shall not directly or indirectly underwrite, share in, or contribute to, the costs of free or discounted rides or serve as an agent of a beer manufacturer or distilled spirits manufacturer to provide free or discounted rides to consumers. Nothing in this provision authorizes a beer manufacturer or distilled spirits manufacturer to provide a gift or anything of value directly or indirectly to a retail licensee.
(2)For purposes of this section:
(A)Beer manufacturer has the same meaning as defined in subparagraph (B) of paragraph (2) of subdivision (b).
(B)Distilled spirits manufacturer means a distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, distilled spirits manufacturers agent, brandy manufacturer, holder of an out-of-state distilled spirits shippers certificate, holder of a distilled spirits importer generals license, or craft distiller.
(C)Glassware means a single-service glass container or nonglass container capable of holding no more than 23 ounces of liquid volume or a decanter, chalice, infusion jar, or similar container of any size and made of any material.
(a)Notwithstanding any other provision of this chapter, in any county where the inhabitants number less than 7,000 and where the major economy of that county is dependent upon tourism and the continual use of that countys recreational facilities, the department may issue four additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license under this section shall have a seating capacity for 100 or more diners. In no event shall more than four such licenses be issued under this section.
(b)In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
(c)A license issued pursuant to this section shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.
SEC. 2.Section 25600 of the Business and Professions Code is amended to read:25600.(a)(1)No licensee shall, directly or indirectly, give any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as provided by rules that shall be adopted by the department to implement this section or as authorized by this division.
(2)(A)Notwithstanding paragraph (1), for purposes of this section, a refund to, or exchange of products for, a dissatisfied consumer by a licensee authorized to sell to consumers shall not be deemed a premium, gift, or free goods given in connection with the sale or distribution of an alcoholic beverage.
(B)A winegrower may advertise or otherwise offer consumers a guarantee of product satisfaction only in newsletters or other publications of the winegrower or at the winegrowers premises. A winegrower may refund to a dissatisfied consumer the entire purchase price of wine produced by that winegrower and sold to that consumer, regardless of where the wine was purchased.
(3)(A)Notwithstanding paragraph (1), a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier may donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to all of the following limitations:
(i)The donation is only in connection with the sale or distribution of alcoholic beverages in manufacturer-sealed containers.
(ii)Promotion or advertisement of the donation shall not directly encourage or reference the consumption of alcoholic beverages.
(iii)A donation shall not benefit a retail licensee, or benefit a nonprofit charitable organization established for the specific purpose of benefiting the employees of retail licensees and the advertisement or promotion of a donation, shall not, directly or indirectly, advertise, promote, or reference any retail licensee. This is not intended to preclude the identification of licensed retailers as permitted by Section 25500.1.
(B)This paragraph shall be inoperative on January 1, 2030.
(b)(1)Except as provided in paragraph (2), no rule of the department may permit a licensee to give any premium, gift, or free goods of greater than inconsequential value in connection with the sale or distribution of beer. With respect to beer, premiums, gifts, or free goods, including advertising specialties that have no significant utilitarian value other than advertising, shall be deemed to have greater than inconsequential value if they cost more than twenty-five cents ($0.25) per unit, or cost more than fifteen dollars ($15) in the aggregate for all those items given by a single supplier to a single retail premises per calendar year.
(2)(A)No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a beer manufacturer to the general public other than three dollars ($3) per unit original cost to the beer manufacturer who purchased it.
(B)With respect to beer, a beer manufacturer may give consumer advertising specialties to the general public that do not exceed three dollars ($3) per unit original cost to the beer manufacturer who purchased it. For purposes of this paragraph, beer manufacturer includes a holder of a beer manufacturers license, a holder of an out-of-state beer manufacturers certificate, an out-of-state vendor that holds a certificate of compliance, or a holder of a beer and wine importers general license. A licensee authorized to give consumer advertising specialties pursuant to this paragraph shall not be precluded from doing so on the basis of holding any other type of alcoholic beverage license.
(C)A beer manufacturer, as defined in subparagraph (B) of paragraph (2) shall not require a beer wholesaler to fund the purchase of consumer advertising specialties that beer manufacturers are permitted to give under paragraph (2).
(D)Consumer advertising specialties furnished by a beer manufacturer are intended only for adults of legal drinking age. Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items that appeal to minors or underage drinkers may not be used in connection with the merchandising of beer.
(c)With respect to distilled spirits and wines, a licensee may furnish, give, rent, loan, or sell advertising specialties to a retailer, provided those items bear conspicuous advertising required of a sign and the total value of all retailer advertising specialties furnished by a supplier, directly or indirectly, to a retailer do not exceed fifty dollars ($50) per brand in any one calendar year per retail premises. The value of a retailer advertising specialty is the actual cost of that item to the supplier who initially purchased it, excluding transportation and installation costs. The furnishing or giving of any retailer advertising specialty shall not be conditioned upon the purchase of the suppliers product. Retail advertising specialties given or furnished free of charge may not be sold by the retail licensee. No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a distilled spirits supplier to a retailer or to the general public of less than five dollars ($5) per unit original cost to the supplier who purchased it. A rule or decision of the department may not approve glassware as an authorized retailer advertising specialty for distilled spirits or wine under this section.
(d)(1)Notwithstanding any other provision of this division, a beer manufacturer or distilled spirits manufacturer may provide directly to consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service for the purpose of furthering public safety. The free or discounted rides may be provided by vouchers, codes, or any other method to deliver the free or discounted ride. A free or discounted ride, or the provision of a voucher, code, or other method of delivery, shall not be conditioned upon the purchase of an alcoholic beverage. A beer and wine wholesaler or distilled spirits importer general that holds a wholesalers or retailers license only as an additional license shall not directly or indirectly underwrite, share in, or contribute to, the costs of free or discounted rides or serve as an agent of a beer manufacturer or distilled spirits manufacturer to provide free or discounted rides to consumers. Nothing in this provision authorizes a beer manufacturer or distilled spirits manufacturer to provide a gift or anything of value directly or indirectly to a retail licensee.
(2)For purposes of this section:
(A)Beer manufacturer has the same meaning as defined in subparagraph (B) of paragraph (2) of subdivision (b).
(B)Distilled spirits manufacturer means a distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, distilled spirits manufacturers agent, brandy manufacturer, holder of an out-of-state distilled spirits shippers certificate, holder of a distilled spirits importer generals license, or craft distiller.
(C)Glassware means a single-service glass container or nonglass container capable of holding no more than 23 ounces of liquid volume or a decanter, chalice, infusion jar, or similar container of any size and made of any material.
(a)Notwithstanding any other provision of this chapter, in any county where the inhabitants number less than 7,000 and where the major economy of that county is dependent upon tourism and the continual use of that countys recreational facilities, the department may issue four additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license under this section shall have a seating capacity for 100 or more diners. In no event shall more than four such licenses be issued under this section.
(b)In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
(c)A license issued pursuant to this section shall not be transferred from one county to another, nor shall it be transferred to any premises not qualifying under this section.
SEC. 2.Section 25600 of the Business and Professions Code is amended to read:25600.(a)(1)No licensee shall, directly or indirectly, give any premium, gift, or free goods in connection with the sale or distribution of any alcoholic beverage, except as provided by rules that shall be adopted by the department to implement this section or as authorized by this division.
(2)(A)Notwithstanding paragraph (1), for purposes of this section, a refund to, or exchange of products for, a dissatisfied consumer by a licensee authorized to sell to consumers shall not be deemed a premium, gift, or free goods given in connection with the sale or distribution of an alcoholic beverage.
(B)A winegrower may advertise or otherwise offer consumers a guarantee of product satisfaction only in newsletters or other publications of the winegrower or at the winegrowers premises. A winegrower may refund to a dissatisfied consumer the entire purchase price of wine produced by that winegrower and sold to that consumer, regardless of where the wine was purchased.
(3)(A)Notwithstanding paragraph (1), a winegrower, a beer manufacturer, a distilled spirits manufacturer, a craft distiller, a brandy manufacturer, a rectifier, or a wine rectifier may donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to all of the following limitations:
(i)The donation is only in connection with the sale or distribution of alcoholic beverages in manufacturer-sealed containers.
(ii)Promotion or advertisement of the donation shall not directly encourage or reference the consumption of alcoholic beverages.
(iii)A donation shall not benefit a retail licensee, or benefit a nonprofit charitable organization established for the specific purpose of benefiting the employees of retail licensees and the advertisement or promotion of a donation, shall not, directly or indirectly, advertise, promote, or reference any retail licensee. This is not intended to preclude the identification of licensed retailers as permitted by Section 25500.1.
(B)This paragraph shall be inoperative on January 1, 2025. 2030.
(b)(1)Except as provided in paragraph (2), no rule of the department may permit a licensee to give any premium, gift, or free goods of greater than inconsequential value in connection with the sale or distribution of beer. With respect to beer, premiums, gifts, or free goods, including advertising specialties that have no significant utilitarian value other than advertising, shall be deemed to have greater than inconsequential value if they cost more than twenty-five cents ($0.25) per unit, or cost more than fifteen dollars ($15) in the aggregate for all those items given by a single supplier to a single retail premises per calendar year.
(2)(A)No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a beer manufacturer to the general public other than three dollars ($3) per unit original cost to the beer manufacturer who purchased it.
(B)With respect to beer, a beer manufacturer may give consumer advertising specialties to the general public that do not exceed three dollars ($3) per unit original cost to the beer manufacturer who purchased it. For purposes of this paragraph, beer manufacturer includes a holder of a beer manufacturers license, a holder of an out-of-state beer manufacturers certificate, an out-of-state vendor that holds a certificate of compliance, or a holder of a beer and wine importers general license. A licensee authorized to give consumer advertising specialties pursuant to this paragraph shall not be precluded from doing so on the basis of holding any other type of alcoholic beverage license.
(C)A beer manufacturer, as defined in subparagraph (B) of paragraph (2) shall not require a beer wholesaler to fund the purchase of consumer advertising specialties that beer manufacturers are permitted to give under paragraph (2).
(D)Consumer advertising specialties furnished by a beer manufacturer are intended only for adults of legal drinking age. Coin banks, toys, balloons, magic tricks, miniature bottles or cans, confections, dolls, or other items that appeal to minors or underage drinkers may not be used in connection with the merchandising of beer.
(c)With respect to distilled spirits and wines, a licensee may furnish, give, rent, loan, or sell advertising specialties to a retailer, provided those items bear conspicuous advertising required of a sign and the total value of all retailer advertising specialties furnished by a supplier, directly or indirectly, to a retailer do not exceed fifty dollars ($50) per brand in any one calendar year per retail premises. The value of a retailer advertising specialty is the actual cost of that item to the supplier who initially purchased it, excluding transportation and installation costs. The furnishing or giving of any retailer advertising specialty shall not be conditioned upon the purchase of the suppliers product. Retail advertising specialties given or furnished free of charge may not be sold by the retail licensee. No rule of the department may impose a dollar limit for consumer advertising specialties furnished by a distilled spirits supplier to a retailer or to the general public of less than five dollars ($5) per unit original cost to the supplier who purchased it. A rule or decision of the department may not approve glassware as an authorized retailer advertising specialty for distilled spirits or wine under this section.
(d)(1)Notwithstanding any other provision of this division, a beer manufacturer or distilled spirits manufacturer may provide directly to consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service for the purpose of furthering public safety. The free or discounted rides may be provided by vouchers, codes, or any other method to deliver the free or discounted ride. A free or discounted ride, or the provision of a voucher, code, or other method of delivery, shall not be conditioned upon the purchase of an alcoholic beverage. A beer and wine wholesaler or distilled spirits importer general that holds a wholesalers or retailers license only as an additional license shall not directly or indirectly underwrite, share in, or contribute to, the costs of free or discounted rides or serve as an agent of a beer manufacturer or distilled spirits manufacturer to provide free or discounted rides to consumers. Nothing in this provision authorizes a beer manufacturer or distilled spirits manufacturer to provide a gift or anything of value directly or indirectly to a retail licensee.
(2)For purposes of this section:
(A)Beer manufacturer has the same meaning as defined in subparagraph (B) of paragraph (2) of subdivision (b).
(B)Distilled spirits manufacturer means a distilled spirits manufacturer, holder of a distilled spirits rectifiers general license, distilled spirits manufacturers agent, brandy manufacturer, holder of an out-of-state distilled spirits shippers certificate, holder of a distilled spirits importer generals license, or craft distiller.
(C)Glassware means a single-service glass container or nonglass container capable of holding no more than 23 ounces of liquid volume or a decanter, chalice, infusion jar, or similar container of any size and made of any material.
(a)Notwithstanding any other provision of this chapter, in any county where the inhabitants number less than 7,000 and where the major economy of that county is dependent upon tourism and the continual use of that countys recreational facilities facilities, the department may issue four additional new original on-sale general licenses for bona fide public eating places. Any premises to qualify for a license under this section shall have a seating capacity for 100 or more diners. In no event shall more than four such licenses be issued under this section.
In(b)In issuing the licenses provided for in this section, the department shall follow the procedure set forth in Section 23961.
A(c)A license issued pursuant to this section shall not be transferred from one county to another. another, nor shall it be transferred to any premises not qualifying under this section.
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Date
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Status
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|---|---|
| Sep 12, 2024 | Chaptered by Secretary of State - Chapter 230, Statutes of 2024. |
| Sep 12, 2024 | Approved by the Governor. |
| Sep 6, 2024 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 28, 2024 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0.). |
| Aug 28, 2024 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77. |
| Aug 28, 2024 | Assembly Rule 77 suspended. |
| Aug 27, 2024 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Aug 7, 2024 | Read second time. Ordered to third reading. |
| Aug 6, 2024 | Read third time and amended. Ordered to second reading. |
| Jul 3, 2024 | Ordered to third reading. |
| Jul 3, 2024 | From Consent Calendar. |
| Jul 2, 2024 | Read second time. Ordered to Consent Calendar. |
| Jul 1, 2024 | From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. |
| Jun 11, 2024 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 15. Noes 0.) (June 11). Re-referred to Com. on APPR. |
| May 22, 2024 | Referred to Com. on G.O. |
| May 9, 2024 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 9, 2024 | Read third time. Passed. Ordered to the Senate. (Ayes 65. Noes 0. Page 5162.) |
| May 2, 2024 | Read second time. Ordered to Consent Calendar. |
| May 1, 2024 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 1). |
| Apr 18, 2024 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 21. Noes 0.) (April 17). Re-referred to Com. on APPR. |
| Mar 21, 2024 | Referred to Com. on G.O. |
| Mar 14, 2024 | From printer. May be heard in committee April 13. |
| Mar 13, 2024 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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|---|---|---|---|---|
| Aug 28, 2024 | AB 3285 G.O. Concurrence in Senate Amendments By RUBIO | Assembly Floor |
Passed |
|
| Aug 27, 2024 | Assembly 3rd Reading AB3285 G.O. (Blanca Rubio) By Dodd | Senate Floor |
Passed |
|
| Jun 11, 2024 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governmental Organization |
Passed |
|
| May 9, 2024 | AB 3285 Governmental Organization Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| May 1, 2024 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 17, 2024 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Governmental Organization |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
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Organization
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Position
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Date
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|---|---|---|
| California Association Of Winegrape Growers | ** Support | |
| Family Winemakers Of California | ** Support | |
| Wine Institute | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 3285
Author:(Committee on Governmental Organization)
As Amended Ver:August 6, 2024
Majority vote
SUMMARY
This bill would extend a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030. This bill also revises authorization criteria for the four additional on-sale general licenses that the Department of Alcoholic Beverage Control (ABC) may issue in a county that is economically dependent on recreational facilities and has a population of less than 7,000 people.
Senate Amendments
1) Extend a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030.
COMMENTS
Background.
ABC Notice of Regulatory Relief. In furtherance of Governor Newsom's emergency declarations and orders regarding the spread of the COVID-19 virus, ABC instituted various temporary relief measures that suspended enforcement of specific legal prohibitions in order to support the alcohol beverage industry while helping to slow the spread of the virus. The ABC issued eight notices of regulatory relief. The department concluded that the temporary measures would not jeopardize the public's health, safety, or welfare.
Included in ABC's Sixth Notice of Regulatory Relief, number 18 (Relief for Charitable Promotions and Sales), issued on October 8, 2020, the ABC suspended enforcement of provisions in current law for a donation or promotion involving a bona fide charitable organization for providing relief related to the COVID-19 pandemic. The notice stated that ABC "supports its licensees making monetary donations to bona fide charitable organizations, including such organizations established to support employees of licensed retailers, in connection with the COVID-19 crisis."
With respect to promotional donations in which a manufacturer, wholesaler, or other supplier-type licensee advertises that a portion of the purchase price of the alcoholic beverages will be donated to a specified charitable organization, ABC suspended enforcement of the prohibitions against provisions of things of value to retailers and the prohibition against the provision of premiums, gifts, or free goods in connection with the sale or marketing of alcoholic beverages, subject to the following specified limitations, including that the promotion is in connection with the sale of sealed containers and does not encourage or promote the consumption of alcoholic beverages.
On June 3, 2021, the ABC issue its Eight Notice of Regulatory relief, which extended a number of the previous reliefs until December 31, 2021. Included in that was the ability of licensees to donate a portion of the proceeds from the sale of an alcoholic beverage to a nonprofit charitable organization.
Legislative action. In 2021, Governor Newsom signed AB 1267 (Cunningham), Chapter 207, Statutes of 2021, which extended the declaratory relief and authorized specified licensees, until January 1, 2025, to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization, subject to certain limitations. This bill extends the sunset to January 1, 2030.
License limitations. Existing law limits the number of new on-sale general licenses that may be issued each year by ABC, based on population growth of the county in which a license applicant is located. The allowable ratio is one on-sale general license for every 2,000 new residents. For 2023, the cost of a new general on-sale license is $17,335 each, and ABC holds a public drawing if there are more applications than available licenses. If no licenses, or an insufficient number of licenses, are available, a liquor license may be purchased from an existing licensee for whatever price the market bears. Over the years, new laws have authorized ABC to issue a limited number of new on-sale general licenses for specified jurisdictions. This bill requires the economy of these counties to also be dependent upon tourism. This requirement would not impact the ability of the ABC to issue any new licenses in any county. This bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
According to the Author
According to the author's office, "this bill extends a current sunset in law that allows alcohol beverage licensees who want to engage in charitable promotions for the benefit of their communities, consumers, and specific charitable organizations. AB 3285 allows an alcohol beverage licensee to donate to a nonprofit or charitable organization proceeds from the sale of an alcohol beverage for the purpose of raising funds for community and place-based initiatives. Without legislation, alcoholic beverage licensees would no longer be allowed to engage in such charitable activities."
Additionally the author's office states that, "this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism."
Arguments in Support
The Wine Institute writes, "Allowing wineries to donate to non-profits in conjunction with their sales has proved to be an effective tool for both wineries and their local communities. Indeed, we've heard from scores of wineries regarding the importance of this law in helping support charitable causes."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
VOTES:
ASM GOVERNMENTAL ORGANIZATION: 21-0-1
YES: Blanca Rubio, Lackey, Addis, Bains, Lee, Davies, Dixon, Gabriel, Gipson, Haney, Jones-Sawyer, Low, McKinnor, Pacheco, Papan, Jim Patterson, Ramos, Soria, Ta, Valencia, Wallis
ABS, ABST OR NV: Cervantes
ASM APPROPRIATIONS: 14-0-1
YES: Wicks, Sanchez, Arambula, Bryan, Calderon, Wendy Carrillo, Dixon, Mike Fong, Grayson, Haney, Hart, Pellerin, Ta, Villapudua
ABS, ABST OR NV: Jim Patterson
ASSEMBLY FLOOR: 65-0-15
YES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Soria, Ta, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
ABS, ABST OR NV: Bains, Cervantes, Megan Dahle, Flora, Gabriel, Grayson, Haney, Low, Mathis, Stephanie Nguyen, Petrie-Norris, Luz Rivas, Schiavo, Ting, Wallis
SENATE FLOOR: 40-0-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dahle, Dodd, Durazo, Eggman, Glazer, Gonzalez, Grove, Hurtado, Jones, Laird, Limón, McGuire, Menjivar, Min, Newman, Nguyen, Niello, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener, Wilk
UPDATED
VERSION: August 6, 2024
CONSULTANT: Eric Johnson / G.O. / (916) 319-2531 FN: 0004691
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 3285 |
THIRD READING
Bill No: AB 3285
Author: Committee on Governmental Organization
Amended: 8/6/24 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 6/11/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto
NO VOTE RECORDED: Smallwood-Cuevas
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 65-0, 5/9/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control
SOURCE: Author
DIGEST: This bill extend a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030. This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
ANALYSIS:
Existing law:
- Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
- Prohibits an alcohol licensee from giving a premium, gift, or free goods in connection with the sale and distribution of any alcoholic beverage, except as provided. Existing law, as an exception no that prohibition, authorizes, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to certain limitations, including a prohibition on a promotion or advertisement of the donation that directly encourages or references the consumption of alcoholic beverages.
- Caps the number of new off-sale general licenses issued by the Department of ABC at one for every 2,500 inhabitants of the county where the establishment is located and at one for every 2,000 inhabitant for an on-sale license.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
- Authorizes the Department of ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000.
This bill:
- Extends a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030.
- Revises a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
- Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
Background
- Author Statement. According to the author’s office, “this bill extends a current sunset in law that allows alcohol beverage licensees who want to engage in charitable promotions for the benefit of their communities, consumers, and specific charitable organizations. AB 3285 allows an alcohol beverage licensee to donate to a nonprofit or charitable organization proceeds from the sale of an alcohol beverage for the purpose of raising funds for community and place-based initiatives. Without legislation, alcoholic beverage licensees would no longer be allowed to engage in such charitable activities.”
Additionally the author’s office states that, “this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.”
- ABC Notice of Regulatory Relief. In furtherance of Governor Newsom’s emergency declarations and orders regarding the spread of the COVID-19 virus, ABC instituted various temporary relief measures that suspended enforcement of specific legal prohibitions in order to support the alcohol beverage industry while helping to slow the spread of the virus. The Department of ABC issued eight notices of regulatory relief. The department concluded that the temporary measures would not jeopardize the public’s health, safety, or welfare.
Included in ABC’s Sixth Notice of Regulatory Relief, number 18 (Relief for Charitable Promotions and Sales), issued on October 8, 2020, the Department of ABC suspended enforcement of provisions in current law for a donation or promotion involving a bona fide charitable organization for providing relief related to the COVID-19 pandemic. The notice stated that ABC “supports its licensees making monetary donations to bona fide charitable organizations, including such organizations established to support employees of licensed retailers, in connection with the COVID-19 crisis.”
With respect to promotional donations in which a manufacturer, wholesaler, or other supplier-type licensee advertises that a portion of the purchase price of the alcoholic beverages will be donated to a specified charitable organization, ABC suspended enforcement of the prohibitions against provisions of things of value to retailers and the prohibition against the provision of premiums, gifts, or free goods in connection with the sale or marketing of alcoholic beverages, subject to the following specified limitations, including that the promotion is in connection with the sale of sealed containers and does not encourage or promote the consumption of alcoholic beverages.
On June 3, 2021, the Department of ABC issue its Eight Notice of Regulatory relief, which extended a number of the previous reliefs until December 31, 2021. Included in that was the ability of licensees to donate a portion of the proceeds from the sale of an alcoholic beverage to a nonprofit charitable organization.
In 2021, Governor Newsom signed AB 1267 (Cunningham, Chapter 207, Statutes of 2021, which extended the declaratory relief and authorized specified licensees, until January 1, 2025, to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization, subject to certain limitations. This bill extends the sunset to January 1, 2030.
- Tied-house laws. State and federal law prohibit certain relations between those engaged in the production, distribution, and retail sale of alcoholic beverages. The term “Tied-house” is derived from a common practice in England whereby a bar or public house was “tied” - by ownership, contractual obligations, or other influences - to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption, as retailers would offer to manufacturers generous favors, such as expensive business meals and gifts, which added costs that needed to be recouped through aggressive product promotion. Tied houses were also subject to undue influence from manufacturers, who sometimes used their influence to force tied houses to sell their products and exclude other manufacturers’ products.
As a result, after the repeal of prohibition in 1933, California’s current “three-tier” system was introduced. The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages.
Exceptions to these restrictions have been enacted throughout the years in those specific instances where the Legislature determined that the public's interests are protected. For example, an existing exception allows certain alcoholic beverage manufacturers at invitation-only hosted events, to provide attendees at the event with free ground transportation to homes, hotels or motels where attendees are staying. Another, allows a beer manufacturer, as defined, to provide consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service to further public safety.
- Current Authorization for Low-Population Counties. Current law authorizes the Department of ABC to issue up to four additional new original on-sale general licenses for a bona fide public eating places in any county where the population is less than 7,000 and where the major economy of that county is dependent on the continual use of that county’s recreational facilities. Given the very low 7,000 inhabitant limit, the only counties that this applies to are the counties of Sierra and Alpine. Existing law, prohibits a license issued under this authority to be transferred from one county to another.
This bill requires the economy of these counties to also be dependent upon tourism. It does not appear that adding this new requirement would impact the ability of the Department of ABC to issue any new licenses in any county. This bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
Related/Prior Legislation
SB 1028 (Alvarado- Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide public eating-places, as specified. (Held on the Senate Appropriations Suspense File)
AB 2359 (Ting, 2024) revises an existing exemption in law by authorizing the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified. (Pending on the Senate Floor)
AB 2589 (Joe Patterson, 2024) authorizes the Department of ABC to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. (Pending in the Senate Appropriations Committee)
AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorized the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.
SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 1267 (Cunningham, Chapter 207, Statutes of 2021) extended the declaratory relief and authorized specified licensees, until January, 1, 2025, to donate a portion of the purchase price of alcoholic beverage to a nonprofit charitable organization, subject to certain limitations.
AB 1586 (Committee on Governmental Organization, 2021) would have revised a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. (Died in the Senate Inactive File)
AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.
SB 352 (Dodd, 2019) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Committee Suspense File)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/8/24)
California Association of Winegrape Growers
Family Winemakers of California
Wine Institute
OPPOSITION: (Verified 8/8/24)
None received
ASSEMBLY FLOOR: 65-0, 5/9/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Soria, Ta, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Bains, Cervantes, Megan Dahle, Flora, Gabriel, Grayson, Haney, Low, Mathis, Stephanie Nguyen, Petrie-Norris, Luz Rivas, Schiavo, Ting, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/8/24 11:47:00
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 3285 |
THIRD READING
Bill No: AB 3285
Author: Committee on Governmental Organization
Amended: 8/6/24 in Senate
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 6/11/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto
NO VOTE RECORDED: Smallwood-Cuevas
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 65-0, 5/9/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control
SOURCE: Author
DIGEST: This bill extend a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030. This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
ANALYSIS:
Existing law:
- Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
- Prohibits an alcohol licensee from giving a premium, gift, or free goods in connection with the sale and distribution of any alcoholic beverage, except as provided. Existing law, as an exception no that prohibition, authorizes, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization in connection with the sale or distribution of an alcohol beverage, subject to certain limitations, including a prohibition on a promotion or advertisement of the donation that directly encourages or references the consumption of alcoholic beverages.
- Caps the number of new off-sale general licenses issued by the Department of ABC at one for every 2,500 inhabitants of the county where the establishment is located and at one for every 2,000 inhabitant for an on-sale license.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
- Authorizes the Department of ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000.
This bill:
- Extends a current sunset that allows, until January 1, 2025, specified licensees to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization until January 1, 2030.
- Revises a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
- Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
Background
- Author Statement. According to the author’s office, “this bill extends a current sunset in law that allows alcohol beverage licensees who want to engage in charitable promotions for the benefit of their communities, consumers, and specific charitable organizations. AB 3285 allows an alcohol beverage licensee to donate to a nonprofit or charitable organization proceeds from the sale of an alcohol beverage for the purpose of raising funds for community and place-based initiatives. Without legislation, alcoholic beverage licensees would no longer be allowed to engage in such charitable activities.”
Additionally the author’s office states that, “this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.”
- ABC Notice of Regulatory Relief. In furtherance of Governor Newsom’s emergency declarations and orders regarding the spread of the COVID-19 virus, ABC instituted various temporary relief measures that suspended enforcement of specific legal prohibitions in order to support the alcohol beverage industry while helping to slow the spread of the virus. The Department of ABC issued eight notices of regulatory relief. The department concluded that the temporary measures would not jeopardize the public’s health, safety, or welfare.
Included in ABC’s Sixth Notice of Regulatory Relief, number 18 (Relief for Charitable Promotions and Sales), issued on October 8, 2020, the Department of ABC suspended enforcement of provisions in current law for a donation or promotion involving a bona fide charitable organization for providing relief related to the COVID-19 pandemic. The notice stated that ABC “supports its licensees making monetary donations to bona fide charitable organizations, including such organizations established to support employees of licensed retailers, in connection with the COVID-19 crisis.”
With respect to promotional donations in which a manufacturer, wholesaler, or other supplier-type licensee advertises that a portion of the purchase price of the alcoholic beverages will be donated to a specified charitable organization, ABC suspended enforcement of the prohibitions against provisions of things of value to retailers and the prohibition against the provision of premiums, gifts, or free goods in connection with the sale or marketing of alcoholic beverages, subject to the following specified limitations, including that the promotion is in connection with the sale of sealed containers and does not encourage or promote the consumption of alcoholic beverages.
On June 3, 2021, the Department of ABC issue its Eight Notice of Regulatory relief, which extended a number of the previous reliefs until December 31, 2021. Included in that was the ability of licensees to donate a portion of the proceeds from the sale of an alcoholic beverage to a nonprofit charitable organization.
In 2021, Governor Newsom signed AB 1267 (Cunningham, Chapter 207, Statutes of 2021, which extended the declaratory relief and authorized specified licensees, until January 1, 2025, to donate a portion of the purchase price of an alcoholic beverage to a nonprofit charitable organization, subject to certain limitations. This bill extends the sunset to January 1, 2030.
- Tied-house laws. State and federal law prohibit certain relations between those engaged in the production, distribution, and retail sale of alcoholic beverages. The term “Tied-house” is derived from a common practice in England whereby a bar or public house was “tied” - by ownership, contractual obligations, or other influences - to a specific manufacturer. In some instances, that model encouraged intemperance in alcohol consumption, as retailers would offer to manufacturers generous favors, such as expensive business meals and gifts, which added costs that needed to be recouped through aggressive product promotion. Tied houses were also subject to undue influence from manufacturers, who sometimes used their influence to force tied houses to sell their products and exclude other manufacturers’ products.
As a result, after the repeal of prohibition in 1933, California’s current “three-tier” system was introduced. The original policy rationale for this body of law was to: (a) promote the state’s interest in an orderly market; (b) prohibit the vertical integration and dominance by a single producer in the market place; (c) prohibit commercial bribery and to protect the public from predatory marketing practices; and, (d) discourage and/or prevent the intemperate use of alcoholic beverages.
Exceptions to these restrictions have been enacted throughout the years in those specific instances where the Legislature determined that the public's interests are protected. For example, an existing exception allows certain alcoholic beverage manufacturers at invitation-only hosted events, to provide attendees at the event with free ground transportation to homes, hotels or motels where attendees are staying. Another, allows a beer manufacturer, as defined, to provide consumers free or discounted rides through taxicabs, transportation network companies, or any other ride service to further public safety.
- Current Authorization for Low-Population Counties. Current law authorizes the Department of ABC to issue up to four additional new original on-sale general licenses for a bona fide public eating places in any county where the population is less than 7,000 and where the major economy of that county is dependent on the continual use of that county’s recreational facilities. Given the very low 7,000 inhabitant limit, the only counties that this applies to are the counties of Sierra and Alpine. Existing law, prohibits a license issued under this authority to be transferred from one county to another.
This bill requires the economy of these counties to also be dependent upon tourism. It does not appear that adding this new requirement would impact the ability of the Department of ABC to issue any new licenses in any county. This bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
Related/Prior Legislation
SB 1028 (Alvarado- Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide public eating-places, as specified. (Held on the Senate Appropriations Suspense File)
AB 2359 (Ting, 2024) revises an existing exemption in law by authorizing the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified. (Pending on the Senate Floor)
AB 2589 (Joe Patterson, 2024) authorizes the Department of ABC to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. (Pending in the Senate Appropriations Committee)
AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorized the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.
SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 1267 (Cunningham, Chapter 207, Statutes of 2021) extended the declaratory relief and authorized specified licensees, until January, 1, 2025, to donate a portion of the purchase price of alcoholic beverage to a nonprofit charitable organization, subject to certain limitations.
AB 1586 (Committee on Governmental Organization, 2021) would have revised a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. (Died in the Senate Inactive File)
AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.
SB 352 (Dodd, 2019) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Committee Suspense File)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 8/6/24)
None received
OPPOSITION: (Verified 8/6/24)
None received
ASSEMBLY FLOOR: 65-0, 5/9/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Soria, Ta, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Bains, Cervantes, Megan Dahle, Flora, Gabriel, Grayson, Haney, Low, Mathis, Stephanie Nguyen, Petrie-Norris, Luz Rivas, Schiavo, Ting, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
8/7/24 17:59:29
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 3285 |
THIRD READING
Bill No: AB 3285
Author: Committee on Governmental Organization
Introduced: 3/13/24
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 6/11/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto
NO VOTE RECORDED: Smallwood-Cuevas
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 65-0, 5/9/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control: on-sale general licenses: counties
SOURCE: Author
DIGEST: This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
ANALYSIS:
Existing law:
- Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
- Caps the number of new off-sale general licenses issued by the Department of ABC at one for every 2,500 inhabitants of the county where the establishment is located and at one for every 2,000 inhabitant for an on-sale license.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
- Defines a “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals and which has suitable kitchen facilities connected therewith. The facility must contain conveniences for cooking and assortment of foods, which may be required for ordinary meals, the kitchen of which must be kept in sanitary condition with the proper amount of refrigeration for the keeping of food on said premise and must comply with all the regulations of the local department of health.
- Authorizes the Department of ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000.
This bill:
- Revises a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
- Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
Background
- Author Statement. According to the author’s office, “this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.”
- Current Authorization. Current law authorizes the Department of ABC to issue up to four additional new original on-sale general licenses for a bona fide public eating places in any county where the population is less than 7,000 and where the major economy of that county is dependent on the continual use of that county’s recreational facilities. Given the very low 7,000 inhabitant limit, the only counties that this applies to are the counties of Sierra and Alpine. Existing law, prohibits a license issued under this authority to be transferred from one county to another.
This bill additionally requires the economy of these counties to also be dependent upon tourism. It does not appear that adding this new requirement would impact the ability of the Department of ABC to issue any new licenses in any county. The bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
- Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.
If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.
Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.
Related/Prior Legislation
SB 1028 (Alvarado- Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide public eating-places, as specified. (Held on the Senate Appropriations Suspense File)
AB 2359 (Ting, 2024) revises an existing exemption in law by authorizing the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified. (Pending on the Senate Floor)
AB 2589 (Joe Patterson, 2024) authorizes the Department of ABC to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. (Pending in the Senate Appropriations Committee)
AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorized the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.
SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 1586 (Committee on Governmental Organization, 2021) would have revised a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. (Died in the Senate Inactive File)
AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.
SB 352 (Dodd, 2019) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Committee Suspense File)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/28/24)
None received
OPPOSITION: (Verified 6/28/24)
None received
ASSEMBLY FLOOR: 65-0, 5/9/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Soria, Ta, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Bains, Cervantes, Megan Dahle, Flora, Gabriel, Grayson, Haney, Low, Mathis, Stephanie Nguyen, Petrie-Norris, Luz Rivas,
Schiavo, Ting, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
7/31/24 14:20:02
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 3285 |
CONSENT
Bill No: AB 3285
Author: Committee on Governmental Organization
Introduced: 3/13/24
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE: 15-0, 6/11/24
AYES: Dodd, Wilk, Alvarado-Gil, Archuleta, Ashby, Bradford, Glazer, Jones, Nguyen, Ochoa Bogh, Padilla, Portantino, Roth, Rubio, Seyarto
NO VOTE RECORDED: Smallwood-Cuevas
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 65-0, 5/9/24 (Consent) - See last page for vote
SUBJECT: Alcoholic beverage control: on-sale general licenses: counties
SOURCE: Author
DIGEST: This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
ANALYSIS:
Existing law:
- Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
- Caps the number of new off-sale general licenses issued by the Department of ABC at one for every 2,500 inhabitants of the county where the establishment is located and at one for every 2,000 inhabitant for an on-sale license.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
- Defines a “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals and which has suitable kitchen facilities connected therewith. The facility must contain conveniences for cooking and assortment of foods, which may be required for ordinary meals, the kitchen of which must be kept in sanitary condition with the proper amount of refrigeration for the keeping of food on said premise and must comply with all the regulations of the local department of health.
- Authorizes the Department of ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000.
This bill:
- Revises a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
- Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
Background
- Author Statement. According to the author’s office, “this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.”
- Current Authorization. Current law authorizes the Department of ABC to issue up to four additional new original on-sale general licenses for a bona fide public eating places in any county where the population is less than 7,000 and where the major economy of that county is dependent on the continual use of that county’s recreational facilities. Given the very low 7,000 inhabitant limit, the only counties that this applies to are the counties of Sierra and Alpine. Existing law, prohibits a license issued under this authority to be transferred from one county to another.
This bill additionally requires the economy of these counties to also be dependent upon tourism. It does not appear that adding this new requirement would impact the ability of the Department of ABC to issue any new licenses in any county. The bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
- Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.
If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.
Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.
Related/Prior Legislation
SB 1028 (Alvarado- Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide public eating-places, as specified. (Held on the Senate Appropriations Suspense File)
AB 2359 (Ting, 2024) revises an existing exemption in law by authorizing the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified. (Pending on the Senate Floor)
AB 2589 (Joe Patterson, 2024) authorizes the Department of ABC to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. (Pending in the Senate Appropriations Committee)
AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorized the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.
SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 1586 (Committee on Governmental Organization, 2021) would have revised a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. (Died in the Senate Inactive File)
AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.
SB 352 (Dodd, 2019) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Committee Suspense File)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT: (Verified 6/28/24)
None received
OPPOSITION: (Verified 6/28/24)
None received
ASSEMBLY FLOOR: 65-0, 5/9/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Chen, Connolly, Davies, Dixon, Essayli, Mike Fong, Vince Fong, Friedman, Gallagher, Garcia, Gipson, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Quirk-Silva, Ramos, Rendon, Reyes, Rodriguez, Blanca Rubio, Sanchez, Santiago, Soria, Ta, Valencia, Villapudua, Waldron, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NO VOTE RECORDED: Bains, Cervantes, Megan Dahle, Flora, Gabriel, Grayson, Haney, Low, Mathis, Stephanie Nguyen, Petrie-Norris, Luz Rivas,
Schiavo, Ting, Wallis
Prepared by: Felipe Lopez / G.O. / (916) 651-1530
7/2/24 9:32:09
**** END ****
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Bill Dodd
Chair
2023 - 2024 Regular
Bill No: AB Hearing Date: 6/11/2024
Author: | Committee on Governmental Organization | ||
Version: | Introduced | ||
Urgency: | Fiscal: | ||
Consultant: | |||
SUBJECT:
DIGEST: This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
ANALYSIS:
Existing law:
- Establishes the Department of ABC and grants it exclusive authority to administer the provisions of the ABC Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
- Provides, under the ABC Act, for the issuance of various alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
- Caps the number of new off-sale general licenses issued by the Department of ABC at one for every 2,500 inhabitants of the county where the establishment is located and at one for every 2,000 inhabitant for an on-sale license.
- Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers.
- Defines a “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals and which has suitable kitchen facilities connected therewith. The facility must contain conveniences for cooking and assortment of foods, which may be required for ordinary meals, the kitchen of which must be kept in sanitary condition with the proper amount of refrigeration for the keeping of food on said premise and must comply with all the regulations of the local department of health.
- Authorizes the Department of ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000.
This bill:
- Revises a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
- Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
Background
Author Statement. According to the author’s office, “this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.”
Current Authorization. Current law authorizes the Department of ABC to issue up to four additional new original on-sale general licenses for a bona fide public eating places in any county where the population is less than 7,000 and where the major economy of that county is dependent on the continual use of that county’s recreational facilities. Given the very low 7,000 inhabitant limit, the only counties that this applies to are the counties of Sierra and Alpine. Existing law, prohibits a license issued under this authority to be transferred from one county to another.
This bill additionally requires the economy of these counties to also be dependent upon tourism. It does not appear that adding this new requirement would impact the ability of the Department of ABC to issue any new licenses in any county. The bill also clarifies that a license issued under this authorization shall not be transferred to any premise that does not qualify under that authorization.
Alcohol License Limitation. Existing law provides for a limitation on the number of new on-sale general licenses that may be issued in a given year by the Department of ABC based on the population growth of the county in which the licensed premises are located. The ratio is one on-sale general license for each 2,000 residents. For example, if a county grows by 10,000 people in a given year, the Department of ABC will issue five new licenses in that county.
If the Department of ABC receives more applications than there are licenses available, a public drawing is held. To participate in such a drawing, an applicant must have been a resident of California for at least 90 days prior to the date of the scheduled drawing. Successful drawing participants will be notified that they have 90 days to complete a formal application for their specific premises. The cost of these new licenses is $15,835 each.
Individuals seeking to open a full-service restaurant with a bar or cocktail menu who fail to obtain a liquor license through this process typically must locate an existing licensed owner willing to sell their license. Usually, that is done by contacting a liquor license broker. The cost of obtaining a license on the secondary market is driven by supply and demand and can reach upwards of $400,000.
Prior/Related Legislation
SB 1028 (Alvarado- Gil, 2024) would have authorized the Department of ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide public eating-places, as specified. (Held on the Senate Appropriations Suspense File)
AB 2359 (Ting, 2024) revises an existing exemption in law by authorizing the Department of ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87 licenses) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specific census tracts within the City and County of San Francisco, as specified. (Pending in the Senate Appropriations Committee)
AB 2589 (Joe Patterson, 2024) authorizes the Department of ABC to issue, in each county, up to 10 additional new original on-sale general licenses for bona fide public eating place located in a retail center. (Pending in the Senate Governmental organization Committee)
AB 1668 (Patterson, Chapter 282, Statutes of 2023) authorizes the Department of ABC to issue no more than 10 new original on-sale general licenses for bona fide public eating places in the County of Placer, as specified.
SB 1452 (Dahle, Chapter 889, Statutes of 2022) authorized, beginning on January 1, 2022, the Department of ABC to issue up to 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 1586 (G.O., 2021) would have revised a current authorization in law that authorizes the Department of ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. (Died in the Senate Inactive File)
AB 2459 (Bigelow, Chapter 53, Statutes of 2020) authorized the Department of ABC to issue up to 10 additional new original on-sale general licenses in Mariposa County and up to 10 additional new original on-sale general licenses per year in Napa County for a period of five years.
SB 352 (Dodd, 2019) would have authorized the Department of ABC, in counties that have reached their limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating places following the year the limit is reached. (Held in the Assembly Appropriations Committee Suspense File)
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
SUPPORT:
None received
OPPOSITION:
None received
Date of Hearing: May 1, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 3285
Author:(Committee on Governmental Organization) – As Introduced Ver:March 13, 2024
Policy Committee: | Governmental Organization | Vote: | 21 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises authorization criteria for the four additional on-sale general licenses that the Department of Alcoholic Beverage Control (ABC) may issue in a county that is economically dependent on recreational facilities and has a population of less than 7,000 people.
Specifically, this bill requires the county to also be economically dependent on tourism, and prohibits transfer of the license to a premise that is not a restaurant with a seating capacity of 100 or more diners.
FISCAL EFFECT:
Minor and absorbable costs to ABC.
COMMENTS:
- Purpose. According to the author, this bill makes it clear that a special on-sale general license for a bona fide public eating place cannot be transferred to another location in the county that does not comply with the criteria established by ABC for the original license. The author intends this bill to ensure conformity with other recent license exemptions.
- License Limitations. Existing law limits the number of new on-sale general licenses that may be issued each year by ABC, based on population growth of the county in which a license applicant is located. The allowable ratio is one on-sale general license for every 2,000 new residents. For 2023, the cost of a new general on-sale license is $17,335 each, and ABC holds a public drawing if there are more applications than available licenses. If no licenses, or an insufficient number of licenses, are available, a liquor license may be purchased from an existing licensee for whatever price the market bears. Over the years, new laws have authorized ABC to issue a limited number of new on-sale general licenses for specified jurisdictions. This bill revises the authorization criteria for a set of those licenses.
- Related and Prior Legislation. AB 1658 (Santiago), Chapter 852, Statutes of 2023, ratified certain tribal-state gaming compacts, but prior to amendments inserting those provisions, AB 1658 was identical to this bill when heard by this committee.
AB 1586 (Committee on Governmental Organization), of the 2021-22 Legislative Session, was identical to this bill. AB 1586 was ordered to the Senate Inactive File.
Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081
Date of Hearing: April 17, 2024
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Blanca Rubio, Chair
ABPCA Bill Id:AB 3285 (
Author:Committee on Governmental Organization) – As Introduced Ver:March 13, 2024
SUBJECT: Alcoholic beverage control: on-sale general licenses: counties
SUMMARY: This bill revises a current authorization in law that authorizes the Department of Alcoholic Beverage Control (ABC) to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism. Specifically, this bill:
1) Revises a current authorization in law that authorizes the ABC to issue four additional new original on-sale general licenses for bona fide public eating places in a county where the population is less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities by additionally requiring that the economy of that county also be dependent on tourism.
2) Clarifies that these licenses are prohibited from being transferred to any premises that do not qualify under the provisions pursuant to which those licenses are issued.
EXISTING LAW:
1) The enactment of the 21st Amendment to the United States Constitution in 1933 repealed the 18th Amendment and ended the era of Prohibition. Accordingly, states were granted the authority to establish alcoholic beverage laws and administrative structures to regulate the sale and distribution of alcoholic beverages.
2) Establishes the ABC and grants it exclusive authority to administer the provisions of the Act in accordance with laws enacted by the Legislature. This involves licensing individuals and businesses associated with the manufacture, importation, and sale of alcoholic beverages and the collection of license fees for this purpose.
3) Provides, under the Act, for the issuance of various categories of alcoholic beverage licenses, including the imposition of fees, conditions, and restrictions in connection with the issuance of those licenses.
3) Caps the number of new off-sale general licenses issued by the ABC at one for every 2,500 residents of the county where the establishment is located and at one for every 2,000 residents for an on-sale license. (California Business and Professions Code § 23817 and 23816)
4) Defines an “on-sale” license as authorizing the sale of all types of alcoholic beverages, namely, beer, wine, and distilled spirits, for consumption on the premises. An “off-sale” license authorizes the sale of all types of alcoholic beverages for consumption off the premises in original, sealed containers. (California Business and Professions Code § 23393, 23394, 23396 and 23399)
5) Defines a “bona fide public eating place” to mean a place which is regularly and in a bona fide manner used and kept open for the serving of meals and which has suitable kitchen facilities connected therewith. The facility must contain conveniences for cooking and assortment of foods, which may be required for ordinary meals, the kitchen of which must be kept in sanitary condition with the proper amount of refrigeration for the keeping of food on said premise and must comply with all the regulations of the local department of health. (California Business and Professions Code § 23038 and 23787)
6) Authorizes ABC to issue four additional new original on-sale general licenses for “bona fide public eating places” for premises that have a seating capacity for 100 or more diners in a county where the inhabitants number less than 7,000 and the major economy of the county is dependent on continual use of that county’s recreational facilities. Existing law, prohibits a license of this type from being transferred from one county to another. As of 2021, only Sierra County and Alpine County have populations less than 7,000. (California Business and Professions Code § 23827)
7) Provides, ABC may not issue a liquor license if it violates an existing, valid, local zoning ordinance. In locales that have enacted such zoning laws, known as conditional use permits or CUP’s, state liquor licenses may only be issued after all zoning permits are in order. (California Business and Professions Code § 23790)
FISCAL EFFECT: This bill is keyed fiscal by Legislative Counsel.
COMMENTS:
Purpose of the bill. According to the author’s office, this bill will make it clear in the law that the special on-sale general license for bona fide public eating places, as defined, cannot be transferred to another location in the designated county if it does not comply with the criteria established by the ABC when it issued the initial license. This would conform to recent exemptions that have been approved by the Legislature and signed by the governor. In addition, the bill would require that a county where the licenses described above could be issued be economically dependent on tourism.
Background.
An on-sale general eating-place license, or Type 47 license, authorizes the consumption of beer, wine, and distilled spirits for consumption on the licensed premise. The licensee is required to operate and maintain the license premises as a bona fide eating-place, which must include suitable kitchen facilities. The licensee must make actual and substantial sales of meals for consumption on the premises. Generally, this means that the business must generate at least 51% of all gross sales from food. As such, a Type 47 license is one of the most common types of liquor licenses for restaurants in California. Some common businesses that use the Type 47 license include full-service restaurants, hotels and resorts, bowling alleys, golf courses and other eating establishments. As of February 29, 2025, there were approximately 15,934 on-sale general (Type 47) licenses statewide.
Existing law limits the number of new on-sale general licenses that may be issued each year by ABC, based on the population growth of the county in which a license applicant is located. The allowable ratio is one on-sale general license for every 2,000 new residents. The ABC holds a public drawing if there are more applications than available licenses. If no licenses, or an insufficient number of licenses, are available, a liquor license may be purchased from an existing licensee for whatever price the market bears. Over the years, new laws have authorized ABC to issue a limited number of new on-sale general licenses for specified jurisdictions.
Related legislation. AB 2359 (Ting) of 2024. Revises an existing exception in law by authorizing the Department of Alcoholic Beverage Control (ABC) to issue no more than five new original neighborhood-restricted special on-sale general licenses (Type 87) per year, until a total of 40 licenses (currently 30) are issued, to premises located in specified census tracts, as specified, within the City and County of San Francisco. (Assembly Committee on Appropriations)
AB 2589 (Joe Patterson) of 2024. This bill would authorize the ABC to issue up to 2 additional new original on-sale general licenses for bona fide public eating places per year in each county to premises where the operation of a bona fide public eating place is, or is located in, a retail center, as defined. The bill would require the ABC to follow specified procedures concerning the issuance of these licenses, and would authorize the department to designate these licenses as on-sale general for special use. (Assembly Governmental Organization)
SB 1028 (Alvarado-Gil) of 2024. This bill would authorize the ABC, in counties that have reached its limit of on-sale general licenses, to issue up to 10 additional new original on-sale general licenses for bona fide eating-places, as specified. (Senate Committee on Appropriations)
SB 1224 (Ochoa Bogh) of 2024. This bill would create an exception for premises located on land owned by the County of Riverside and operated as the Riverside County Fairgrounds and would specify that the exception does not require the premises to be operated as a bona fide public eating place. (Senate Committee on Governmental Organization)
Prior legislation. AB 1668 (Joe Patterson), Chapter 282, Statutes of 2023. Authorized the ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in the County of Placer. The bill prohibited ABC from issuing more than four of these licenses per year. The bill prohibited transferring the new licenses out of the county or sold for a price greater than the original fee paid by the seller.
SB 1452 (B. Dahle), Chapter 889, Statutes of 2022. Authorized the ABC to issue no more than a total of 10 new original on-sale general licenses for bona fide public eating places in both the County of El Dorado and in the County of Shasta, as specified.
AB 2459 (Bigelow), Chapter 53, Statutes of 2020. Authorized ABC to issue no more than a total of 10 additional new original on-sale general licenses for bona fide public eating places in Mariposa County and up to 10 additional new original on-sale general licenses per year to bona fide public eating places in the County of Napa over a 5-year period.
AB 471 (Ting), Chapter 442, Statutes of 2017. Authorized ABC to issue no more than five new original neighborhood-restricted special on-sale general licenses per year, until a total of 30 licenses are issued, to premises located in any of the census tracts, as specified, within the City and County of San Francisco. Additionally, authorized ABC to issue a maximum of 20 new original on-sale general licenses, over a four-year period, in Napa County, as specified.
AB 1670 (Dodd), Chapter 347, Statutes of 2016. Authorized ABC to issue no more than 5 additional new original on-sale general licenses to bona fide public eating places in the County of Napa with a seating capacity of 25 or more diners, for a period of one-year.
SB 1285 (Leno), Chapter 790, Statutes of 2016. Authorized, beginning January 1, 2017, ABC to issue no more than a total of five new original “neighborhood-restricted” special on-sale general licenses, for premises located within specified City and County of San Francisco neighborhoods, subject to certain requirements and restrictions.
AB 461 (Achadjian, Chapter 110, Statutes of 2013). Authorized ABC to issue no more than a total of five new original on-sale general licenses, over a three-year period, for bona fide public eating-places in the County of San Luis Obispo.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Eric Johnson / G.O. / (916) 319-2531
Discussed in Hearing
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Bill Author
Bill Co-Author(s):